One ATV investor battles another for HK$50 million

ATV is slipping into another legal row, this time launched by a major shareholder in an attempt to secure at least HK$50 million in interest from bonds issued by the embattled broadcaster, a High Court writ shows.

Taiwanese snack tycoon Tsai Eng-meng is suing another shareholder, Panfair Holdings, for the interest it owes his wholly owned company, San Want, according to the writ.

The case was filed under the name of San Want.

Tsai, together with brothers Payson Cha Mou-sing and Johnson Cha Mou-daid, hold 48 per cent of the struggling station, while Panfair owns another 10.75 per cent.

In 2009, Panfair bought HK$200 million of ATV's "fixed-rate unsecured convertible series A bonds" from a firm called Fireworks International, the writ said.

The bonds would yield 8 per cent interest every year. Panfair and San Want reached a deal to pay the latter 62.5 per cent of the yearly interest once the bonds matured on March 25 last year.